Aggregate demand is the total demand for all goods and services in an economy from
All sectors including the rest of the world
The household sector
The household and government sectors
What is the marginal propensity to consume?
The ratio of the change in consumption expenditure to the change in disposable income
The percentage of income that is consumed
The percentage of income that is not saved
One minus the fraction of total disposable income that is saved
Aggregate supply is the total amount
Produced by the government
Of goods and services produced in an economy
Of labour supplied by all households
Of products produced by a given industry
The total quantity of an economy's final goods and service demanded at different price levels is
The aggregate supply curve
The aggregate demand curve
The Phillip's curve
The aggregate expenditure function
The accelerator theory of investment says that induced investment is determined by:
The rate of change of national income
The level of aggregate demand
Expectations
The level of national income
The Marginal Propensity to Consume
ΔS/ΔY
C/y . ΔP/ΔQ
ΔP/ΔQ
ΔC/ΔY
The fraction of a change in income that is consumed or spent is called:
The marginal propensity of expenditure
The average propensity to consume
The marginal propensity to save
The marginal propensity to consume
The aggregate demand curve shift to the left when
The money supply falls
The price level increases
Taxes are increased
All of the above
The central problem in Macro Economics is
Income and employment
Price and Output
Interest and Money
Unemployment
Keynes assumed the situation of
Full employment
Under employment
Involuntary unemployment
Marginal unemployment
